Different task force, same conclusion
Which agrees with many of the conclusions of the Employer Task Force on Pensions.
The UK's pensions system is in crisis. The public knows this, as does the Government. Yet, the Government's strategy of transferring risk to individuals while expecting them to trust and invest their savings in the financial services industry, has backfired. Graham Vidler, head of policy, Which?, said, “It’s time for Government to act and provide consumers with leadership and real choices on pensions rather than relying on an industry with a legacy of mistrust and poor products. “Our research shows that most of the British public agree there is a pensions crisis with three quarters blaming the government for failing to address it. The research also reconfirms that trust in the financial services industry remains disturbingly low. Fewer than one in three trust financial institutions to run their pensions. “Hardly a recipe for success. The complexity of the UK’s pensions system, a lack of unbiased advice on pension planning for consumers, and widespread distrust of the financial services industry has led to this. Which? is again calling for a clear lead from government now.” As part of its long running campaign on pensions, Which? is calling for: - A radically simplified two tier pension system, which consumers can engage with and have confidence in. This means:
-Improving the state pension to provide a decent retirement income
-Government policies designed to create new second tier pensions which consumers have confidence in - Introduction of compulsory contributions shared between employers and individuals, abolishing contracting out as part of the simplification
- Greater flexibility around retirement including considering raising the state retirement age
- A new permanent independent commission to oversee policy on pensions and other public policy issues such as long-term care
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Date published: 12/16/2004 12:00:01 AM
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